Serbia: Floods damage to Power utility company EPS 500MEUR

Published on 8. January 2015., News Serbia Energy

The damage that the “Electric Power Industry of Serbia” (EPS) suffered due to floods and other natural disasters this year is about half a billion EUR- said EPS director, Aleksandar Obradovic.

– For the repair of flood damage EPS has already received a loan from the World Bank with the state guarantee, as well as additional funds from commercial banks for financial liquidity – Obradovic said, adding that the goal is to stabilize the company as soon as possible and reduce costs to be able to repay loans and to become profitable.

He announced that 2015th will be a year of investment in EPS and it is expected to intensify activities to build a new power plant in Kostolac at the end of next year.

– First, it is necessary to activate a loan to build the plant, then it is necessary to develop proper study and “appreciable” works are expected to be done at the end of the year – he said and stressed that EPS will do all to meet deadlines for this project completion.

-That will be the first new thermal power plant built in Serbia after 25 years and I expect that a lot of domestic workers will be employed in this work, which will last five years- said Obradovic.

He noted that annual EPS investments are between 200 and 250 MEUR, which positively affects the whole economy of Serbia.

– We also plan the investment in renewable energy; we are negotiating with the German KfW bank for financing on wind and solar park in Kostolac – said Obradovic, adding that EPS also plans the revitalization of small hydropower plants. He recalled that eight have already begun with modernization and seven will start it in 2015th .

When it comes to the electricity market liberalization, which will be completely open from January 1st 2015th, Obradovic said that because of the electricity price, which is 30% lower in EPS than the market prices in the region, is not expected that competitor companies take over supply of households in Serbia, which also from the New Year may or may not have to look for suppliers in the free market.

– The price, however, is not the only factor and argument in the battle for customers and therefore EPS “will not sleep peacefully” – said Obradovic.

Director of EPS told citizens not to have to send any announcements to EPS that wanted to continue using EPS supply, and notifications would be necessary to send only if they wanted to change supplier.